BILL ANALYSIS
AB 519
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 519 (Solorio)
As Amended August 20, 2010
Majority vote
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|ASSEMBLY: |77-0 |(May 21, 2009) |SENATE: |23-10|(August 24, |
| | | | | |2010) |
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Original Committee Reference: TRANS.
SUMMARY : Requires towing companies to display a "Towing Fees
and Access Notice."
The Senate amendments :
1)Change authorship of this bill from Mr. Duvall to Mr. Solorio.
2)Define the term "documentation" as it pertains to a towing
facility establishing that a person requesting release of a
vehicle is entitled to possession of that vehicle.
3)Provide that a lienholder is not liable for any claim or
dispute directly arising out of the reliance on that
documentation.
4)Define the term "agent" to include, but is not limited to, any
person designated to inspect the vehicle by the request of the
legal owner or lessor, in writing or by telephone, to the
lienholder.
5)Change the term "California Consumer Bill of Rights for Towed
Vehicles" to "Towing Fees and Access Notice."
6)Exempt facilities that only store towed vehicles that have not
been towed and automotive repair facilities that do not
provide towing services from the requirement to post a Towing
Fees and Access Notice.
7)Relieve automotive repair dealers who do not provide tows from
any responsibility for the accuracy of unaltered towing
invoice information they may pass from the tow company to the
consumer.
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8)Define "normal business hours" as Monday through Friday from
8:00 a.m. to 5:00 p.m., inclusive, except state holidays.
9)Revamp the detailed description of the required notice
primarily by removing the sections regarding "Who can tow your
vehicle?" "If my vehicle was towed how can I find it?" and
"What is the towing company required to do prior to towing
your vehicle?" and adding sections regarding "Who was liable
if my vehicle was damaged during towing and storage?" and
"What happens if a towing company violates the law?"
10) Require the invoice for a vehicle that was towed without
the owner's request to include the identity of the person or
governmental agency that directed the tow and require all
towing invoices to include a clear, itemized, and detailed
explanation of any additional services or fees.
11) Exempt from this bill's provisions the towing or storage of
a repossessed vehicle by any person subject to, or exempt
from, the Collateral Recovery Act.
12) Allow an insurer or insurer's agent to pay by bank draft
for towing or storage charges.
EXISTING LAW :
1)Allows a peace officer or a regularly employed and salaried
public agency employee who is engaged in directing traffic or
enforcing parking laws and regulations, to remove a vehicle
located within the territorial limits in which the officer or
employee may act, under any of several specified
circumstances. These circumstances include a vehicle being
left unattended and constituting an obstruction to traffic, a
vehicle that has been reported as stolen or embezzled, and a
vehicle that is illegally parked and is blocking a private
driveway or is preventing access by firefighting equipment to
a fire hydrant.
2)Prohibits any towing service from providing, and any person or
public entity from accepting, any direct or indirect
commission, gift, or any compensation whatever from a towing
service in consideration of arranging or requesting the
services of a tow truck.
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3)Allows any public entity otherwise authorized by law to
require a fee in connection with the award of a franchise for
towing vehicles on behalf of that public entity.
4)Prohibits such a fee from exceeding the amount necessary to
reimburse the public entity for its actual and reasonable
costs incurred in connection with the towing program.
5)Prohibits any towing service or any employee of a towing
service from accepting any money or anything of value from a
repair shop and any repair shop or any employee of a repair
shop from paying any money or anything of value as a
commission, referral fee, inducement, or in any manner a
consideration, for the delivery or the arranging of a delivery
of a vehicle.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, minor state costs and any local costs are
not reimbursable.
COMMENTS : This bill was introduced in an effort to address
consumer confusion over towing laws and the actions of a narrow
segment of the towing industry that has given the industry as a
whole a bad name. "Unfortunately," the original author
lamented, "a few non-professional, dishonest towing operators
may actually capitalize on consumer confusion in order to garner
a profit. This negative perception has hurt honest towing
operations through loss of goodwill and trust among potential
customers. In fact, the confusion has led to an increasingly
antagonistic relationship with insurance companies, who pay the
bill for frustrated policyholders on many non-consensual
(accident-based) tows. As a result, many insurers claim and
dispute towing and storage charges for their policyholders as
not reasonable or ordinary."
By establishing and making widely available a "Towing Fees and
Access Notice," the author hoped to "alleviate the frustration
felt by consumers who do not currently know the laws applicable
to nonconsensual tows (and to provide) ample disclosure of the
way a just and law-abiding towing company should operate.
Consumers will know exactly what to expect, exactly what
questions to ask, and where to go to seek redress of any
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improprieties."
This bill is the product of a stakeholder group (insurance
companies, auto clubs, and the towing industry) that has been
seeking to clarify responsible business practices. The
stakeholders acknowledge that "Many times the vehicle is taken
without authorization; the owner is given no cost estimate, no
receipt, and no information telling him/her where the car was
taken. Eventually, days later, maybe a week, the vehicle owner,
or even the insurance company may track down the lot where the
car is located, only to find out that the tow company has
charged outrageous fees for towing and storage." The intent of
the group was to develop a bill of rights that would advise
consumers of all pertinent information regarding a towed
vehicle. A review of the language of the group's work product
reveals that it is rather comprehensive, fairly easy to
understand, and seems to answer most of the questions that a
consumer might reasonably pose.
Analysis Prepared by : Howard Posner / TRANS. / (916) 319-2093
FN: 0006632